BILL NUMBER: SB 810	CHAPTERED  10/10/99

	CHAPTER   937
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 10, 1999
	PASSED THE SENATE   SEPTEMBER 10, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 7, 1999
	AMENDED IN ASSEMBLY   SEPTEMBER 3, 1999
	AMENDED IN ASSEMBLY   SEPTEMBER 1, 1999
	AMENDED IN ASSEMBLY   AUGUST 30, 1999
	AMENDED IN ASSEMBLY   AUGUST 18, 1999
	AMENDED IN ASSEMBLY   JUNE 28, 1999
	AMENDED IN SENATE   MAY 13, 1999
	AMENDED IN SENATE   MAY 3, 1999
	AMENDED IN SENATE   APRIL 5, 1999

INTRODUCED BY   Senator Costa
   (Principal coauthor:  Assembly Member Longville)

                        FEBRUARY 25, 1999

   An act to amend Sections 25503.6 and 25503.8 of the Business and
Professions Code, relating to alcoholic beverages, and declaring the
urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 810, Costa.  Alcoholic beverages:  advertising restrictions.
   Existing provisions of the Alcoholic Beverage Control Act known as
"tied-house" restrictions generally prohibit certain alcoholic
beverage licensees from holding an interest in various other
alcoholic beverage licensees.  Existing law generally prohibits a
manufacturer of alcoholic beverages and a winegrower from paying,
crediting, or compensating a retailer for advertising or paying or
giving anything of value for the privilege of placing a sign or
advertisement with a retail licensee.  It authorizes, as an
exception, the holder of a beer manufacturer's or winegrower's
license to purchase advertising space and time from, or on behalf of,
an on-sale retail licensee, subject to specified conditions,
including that the on-sale licensee is the owner, an agent of the
owner, manager of the stadium or arena, assignee of the owner's
advertising rights, or the major tenant of the owner, of either an
outdoor stadium or a fully enclosed arena with a fixed seating
capacity in excess of 10,000 seats located in a county of the 8th
class, or of a fully enclosed arena with a fixed seating capacity in
excess of 18,000 seats located in Orange County.  Existing law makes
it a misdemeanor for the holder of a beer manufacturer's license or
winegrower's license to induce a beer or wine wholesaler licensee to
provide that advertising space or time to the on-sale retail
licensee.
   This bill would extend that exception to an on-sale licensee who
is the owner, manager, agent of the owner, assignee of the owner's
advertising rights, or the major tenant of the owner of an outdoor
stadium or fully enclosed arena with a fixed seating capacity in
excess of 8,500 seats located in Kern County or an exposition park of
not less than 50 acres that includes an outdoor stadium with a fixed
seating capacity in excess of 8,000 seats and a fully enclosed arena
with an attendance capacity in excess of 4,500 people, located
within a county of the 4th class.
   Under existing law, the holder of a beer manufacturer's license or
a winegrower's license is permitted to purchase advertising space
and time from, or on behalf of, an on-sale retail licensee under
certain conditions, if the on-sale licensee owns a specified
facility.
   This bill would add a theme or amusement park and the adjacent
retail, dining, and entertainment area located in Orange County to
those facilities owned by on-sale retail licensees from whom holders
of a beer manufacturer's or winegrower's license may purchase
advertising space and time, as provided.
   This bill would also make it a misdemeanor for an on-sale retail
licensee, subject to the provisions of the bill, to solicit or coerce
a holder of a beer or wine wholesaler's license to solicit a holder
of a beer manufacturer's or winegrower's license to purchase that
advertising space or time.
   By creating a new crime, this bill would impose a state-mandated
local program.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
  This bill would declare that it is to take effect immediately as an
urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 25503.6 of the Business and Professions Code is
amended to read:
   25503.6.  (a) Notwithstanding any other provision of this chapter,
the holder of a beer manufacturer's or winegrower's license may
purchase advertising space and time from, or on behalf of, an on-sale
retail licensee subject to all of the following conditions:
   (1) The on-sale licensee is the owner, manager, agent of the
owner, assignee of the owner's advertising rights, or the major
tenant of the owner of any of the following:
   (A) An outdoor stadium or a fully enclosed arena with a fixed
seating capacity in excess of 10,000 seats located within a county of
the eighth class, as defined in Section 28029 of the Government
Code.
   (B) A fully enclosed arena with a fixed seating capacity in excess
of 18,000 seats located in Orange County.
   (C) An outdoor stadium or fully enclosed arena with a fixed
seating capacity in excess of 8,500 seats located in Kern County.
   (D) An exposition park of not less than 50 acres that includes an
outdoor stadium with a fixed seating capacity in excess of 8,000
seats and a fully enclosed arena with an attendance capacity in
excess of 4,500 people, located within a county of the fourth class,
as defined in Section 28025 of the Government Code.
   (2) The outdoor stadium or fully enclosed arena described in
paragraph (1) is not owned by a community college district.
   (3) The advertising space or time is purchased only in connection
with the events to be held on the premises of the stadium or arena
owned by the on-sale licensee.
   (4) The on-sale licensee serves other brands of beer or wine in
addition to the brand manufactured by the beer manufacturer or
produced by the winegrower purchasing the advertising space or time.

   (b) Any purchase of advertising space or time pursuant to
subdivision (a) shall be conducted pursuant to a written contract
entered into by the holder of the beer manufacturer's or winegrower's
license and the on-sale licensee.
   (c) Any holder of a beer manufacturer's or winegrower's license
who, through coercion or other illegal means, induces a holder of a
beer or wine wholesaler's license to fulfill those contractual
obligations entered into pursuant to subdivision (a) or (b) shall be
guilty of a misdemeanor and shall be punished by imprisonment in the
county jail not exceeding six months, or by a fine in an amount equal
to the entire value of the advertising space or time involved in the
contract, plus ten thousand dollars ($10,000), or by both
imprisonment and fine.  The person shall also be subject to license
revocation pursuant to Section 24200.
   (d) Any on-sale retail licensee, as described in subdivision (a),
who solicits or coerces a holder of a beer or wine wholesaler's
license to solicit a holder of a beer manufacturer's or winegrower's
license to purchase advertising space or time pursuant to subdivision
(a) or (b) shall be guilty of a misdemeanor and shall be punished by
imprisonment in the county jail not exceeding six months, or by a
fine in an amount equal to the entire value of the advertising space
or time involved in the contract, plus ten thousand dollars
($10,000), or by both imprisonment and fine.  The person shall also
be subject to license revocation pursuant to Section 24200.
  SEC. 2.  Section 25503.8 of the Business and Professions Code is
amended to read:
   25503.8.  (a) Notwithstanding any other provision of this chapter,
the holder of a beer manufacturer's or winegrower's license may
purchase advertising space and time from, or on behalf of, an on-sale
retail licensee if all of the following conditions are met:
   (1) The on-sale licensee is the owner of any of the following:
   (A) A fully enclosed auditorium or theater with a fixed seating
capacity in excess of 6,000 seats, at least 60 percent of the use of
which is for plays or musical concerts, not including sporting
events.
   (B) A motion picture studio facility at which public tours are
conducted for at least four million people per year.
   (C) A retail, entertainment development adjacent to, and under
common ownership with, a theme park, amphitheater, and motion picture
production studio.
   (D) A theme or amusement park and the adjacent retail, dining, and
entertainment area located in Orange County.
   (2) The advertising space or time is purchased only in connection
with one of the following:
   (A) In the case of a fully enclosed auditorium or theater, in
connection with sponsorship of plays or musical concerts to be held
on the premises of the auditorium or theater owned by the on-sale
licensee.
   (B) In the case of a motion picture studio facility, in connection
with sponsorship of the public tours or special events conducted at
the studio facility.
   (C) In the case of a retail, entertainment development, in
connection with sponsorship of public tours or special events
conducted at the development.
   (D) In the case of a theme or amusement park and the adjacent
retail, dining, and entertainment area, located in Orange County, in
connection with daily activities and events at the theme or amusement
park and the adjacent retail, dining, and entertainment area.
   (3) The on-sale licensee serves other brands of beer or wine in
addition to the brand manufactured by the beer manufacturer or
produced by the winegrower purchasing the advertising space or time.

   (b) Any purchase of advertising space or time conducted pursuant
to subdivision (a) shall be conducted pursuant to a written contract
entered into by the holder of the beer manufacturer's or winegrower's
license and the on-sale licensee, which contract shall not in any
way involve the holder of a beer or wine wholesaler's license.
   (c) Any holder of a beer manufacturer's license or winegrower's
license who, through coercion or other means, induces a holder of a
beer or wine wholesaler's license to fulfill those contractual
obligations entered into pursuant to subdivision (a) or (b) shall be
guilty of a misdemeanor and shall be punished by imprisonment in the
county jail not exceeding six months, or by a fine in an amount equal
to the entire value of the advertising space or time involved in the
contract, plus ten thousand dollars ($10,000), or by both
imprisonment and fine.  The person shall also be subject to license
revocation pursuant to Section 24200.
   (d) Any on-sale retail licensee, as described in subdivision (a),
who solicits or coerces a holder of a beer or wine wholesaler's
license to solicit a holder of a beer manufacturer's or winegrower's
license to purchase advertising space or time pursuant to subdivision
(a) or (b) shall be guilty of a misdemeanor and shall be punished by
imprisonment in the county jail not exceeding six months, or by a
fine in an amount equal to the entire value of the advertising space
or time involved in the contract, plus ten thousand dollars
($10,000), or by both imprisonment and fine.  The person shall also
be subject to license revocation pursuant to Section 24200.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
  SEC. 4.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order that the loss of advertising revenue by the City of
Bakersfield and the County of Orange may be alleviated at the
earliest opportunity and to avoid any impropriety associated with
summer and fall beer or wine sales and distribution at the designated
facility from allowing beer manufacturers or winegrowers to
compensate the facility operator for advertising, it is necessary
that this act go into immediate effect.
